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Do you need an extreme way to cut your debt for good? Our debt is part of what is leading to the lower 95% of households having their net worth decline over the last ten years.
It is not enough to just say get rid of your debt. For many, it is easier said than done. So let’s look at different ways to cut your debt when everything is working against you.
When you think about debt there are really only two things that contribute to it. Either spending is too high or you need to make more. That is all it comes down to. Most will try to complicate it.
If you are going on wild spending sprees then you will get into debt, which is pretty obvious. But if you are not spending more than you make and trying to save in every way, you could still get into debt with just one thing going wrong.
These ideas for getting out of debt are for those of you who are doing everything you can but still aren’t making it. Everyone else could benefit too, but it may be more extreme than you want to do at this time.
Remember these ideas to cut your debt are meant for anyone who can’t cut spending anymore and are not overspending.
Caution Some Of These Might Seem Really Extreme
1 Become a minimalist
Go through everything you own and determine the minimum number of items that you need to own. This means everything. Your clothes, dishes, knick-knacks and anything else that you have laying around. Everything else put in a pile to go.
2 Sell everything that you decide not to keep
Once you commit to becoming a minimalist you need to get rid of everything that is in the “don’t keep” pile. This could be on eBay, yard sales, craigslist, friends and family or any other way you can think of. Get the most you can for things.
Also take anything they are willing to give for the small things that are old, outdated, or broken. Think about this if you have a bunch of old Christmas lights or extension cords those could be sold for the copper wire inside. Even things that are broken can be worth something.
We once bought a DIY remote start for our car. It was so long ago that it came with a VHS tape. We looked over the instructions and decided that we would likey fuck up the car so we didn’t do it.
I sold it several years later on eBay for $30 and it was already opened. You will be surprised what people will pay for things you think are garbage.
3 Sell your garbage
Speaking of garbage you would be surprised that people will pay for your garbage. Anything that someone can use for a craft could be sold. Glass jars, liquor bottles, toilet/paper towel rolls or even some plastic containers. This is not likely to get you a ton of money, but if you are counting pennies then a few dollars will add up.
4 Recycle for cash
If you have a recycling center in your area that takes aluminum, glass or other metals then you may be able to get money for it. Again this won’t be much, but if it’s going into the garbage anyway then it is like found money.
5 Stop using paper products
This means toilet paper and paper towels in addition to things like paper plates. Cutting up cloth into squares and using them in place of toilet paper could save you quite a bit.
For example say you pay 50¢ on a roll of toilet paper and your family uses 4 a week. That would be $8 a month or $104 a year. If your family uses more then you will save even more.
Then add on the other paper items to stop using and see how much more you will save. It will take a little getting used to, but you can do it.
6 Only buy used
This means thrift stores, yard sales or even hand me downs from friends and family. You don’t need the newest and best. It becomes very freeing to stop trying to keep up with the Jones’. If you already got rid of everything extra to live a minimalist lifestyle then you shouldn’t need much anyway.
7 Big house? Sell it
If you have more house than you need then sell it and get a smaller house. Also, try to get a house in an area that has lower property taxes. That would be even more money saved. Even if the kids need to share a bedroom you can make it work. Besides kids can always learn to share more.
8 Move away
Sometimes selling your house just isn’t enough. It may make more sense to move out of state. States that are cheaper to live in or even a different area of the state you are in now may work to your benefit. Plus you may be able to get a better job in another state.
If you have a relative in another state you may want to consider moving closer to them if it’s a cheap area. It could be helpful to get to know the area and possibly be helpful for watching the kids (if you have them). Many cities are increasing the minimum wage when the state doesn’t. It might be worth it to check what cities have increased wages. Just a thought.
9 Live in your car for a while
If it’s just you or you and one other person this could work for a short time. Don’t do this if you have kids unless you become homeless not by choice. Then obviously do what you must.
Assuming this is a choice you make you would save whatever your monthly house payment would be plus utilities. For example let’s say your house payment was $1,000 a month plus $200 a month for water, gas, and electricity and then $100 for cable.
Just an estimate, but that would be $1,300 a month and in six months you save $7,800. This could be quite a nice boost to cut your debt or to pay it off completely. If you are really crazy and push it for a year you could save $15,600 or more.
10 Join the military
This could be the most extreme way to cut your debt. If you are on active duty you will get monthly income, but also will have food and housing covered for you. That is if you are living on base.
If you live off base you can get housing and meal allowances. This still could be a huge reduction in the costs you were already paying.
If you apply all of that income towards the debt you can have it paid off very quickly. This is not for everyone, but if you are looking for an extreme way to cut your debt and to change your life this is it.
This is by no means every extreme way to cut your debt. But hopefully, these things get you thinking about what you could do. So often it is hard to see a way out of our own problems. But someone else can easily see something that we could do to make the needed changes.
We get paralyzed and overwhelmed with the situation that we do nothing. Take that time to think about things differently. If you need to tell someone else your situation and ask them if they see any other options that you don’t. Tell them that you aren’t asking to be told what to do, just looking for a different perspective. Good Luck!
